# Chain Discounts chain discount: series of discounts or when more than one discount is given – a discount on an already discounted price Another discount.

## Presentation on theme: "Chain Discounts chain discount: series of discounts or when more than one discount is given – a discount on an already discounted price Another discount."— Presentation transcript:

Chain Discounts chain discount: series of discounts or when more than one discount is given – a discount on an already discounted price Another discount that can happen is that of a chain discount. A chain discount is where there is more than one discount that will be used on one product. A supplier may offer chain discounts to sell out a discontinued item or to encourage you to place a larger order. A chain discount is a series of discounts.

For chain: 35% less 20% less 15% or 35/20/15
Does this mean 70% off? no 35% discount is deducted from the retail price to yield first net price Then, 20% is deducted from first net price to yield second net price Then 15% is deducted from the second net price to yield final net price An example of a chain discount would be where a business has taken a product and already discounted 35% off and you discount an additional 20% off and you offer a 15% coupon to customers to increase sales. This does not mean 35% + 20% + 15% off. 35% discount is deducted from the list (retail) price to yield first net price. 20% of first net price is deducted from first net price to yield second net price. 15% of second net price is deducted from second net price to yield final net price.

For Example Retail price is \$400. Chain discount is 30% less 25%.
Find the first net price Dollar Discount = X = First Net Price = = Final net price Final Net Price = = List price is \$400. Chain discount is 30% less 25%. Find the first net price. Paid Percent of 30% = 70% 400 * .70 = 280 Find the final net price. Paid Percent of 25% = 75% 280 * .75 = 210

Make it simple Chain Shortcut Formula
Retail Price x (1 – 1st discount) x (1 – 2nd discount) Example List Price of \$200. Chain discount is 15% less 25% Net Price: x X = \$200 x (1-.15) x (1-.25) \$200 x (.85) x (.75) Answer = \$127.50

Putting it together The Green Lawn Corporation produces a lawn mower, which is priced at \$695. A new model is ready for production, so the old model is to be discontinued. Green Lawn is offering a chain discount of 20% then 10% (20/10). What is the final net price of the old lawn mower? Answer to example First Net Price 695 * .80 = 556 Final Net Price 556 * .90 = \$500.40

Example: You get a coupon in the mail for 40% off of a pair of shoes that are already 25% off. The shoes are \$50. What would your final cost for the Shoes be? Net Price: x X =

Try: \$895 with 20/10/35 discount Net Price: x X X =

Figure this… The football stadium sold a total of 15,500 tickets, of those tickets 25% were sold to women. Of the tickets sold to women, 50% of them were sold at a discounted price. How many women purchased discounted tickets? Remember to round up to the nearest whole number 15,500 x .25 = 3875 3875 x .50 = 1938

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